FMEA Analysis

Effectiveness of Lean Manufacturing at Sri Chakra TVS
EFFECTIVENESS OF LEAN MANUFACTURING IN SRICHAKRA TVS TYRES 1.1 Introduction to Lean Manufacturing
Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. Basically - using techniques to cut down waste in a business thereby improving efficiency. The benefits generally are lower costs, higher quality, and shorter lead times. The term "lean manufacturing" is coined to represent half the human effort in the company, half the manufacturing space, half the investment in tools, and half the engineering hours to develop a new product in half the time. The characteristics of lean processes are: Single-piece production Repetitive order characteristics Just-In-Time materials/pull scheduling Short cycle times Quick changeover Continuous flow work cells Collocated machines, equipment, tools and people Compressed space Multi-skilled employees Flexible workforce Empowered employees
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Types of Wastes The elimination of waste is the goal of Lean, and Toyota defines the original seven types of wastes (MUDA). They are
Transport (moving products that are not actually required to perform the processing) Inventory (all components, work in process and finished product not being processed) Motion (people or equipment moving or walking more than is required to perform the processing)
Waiting (waiting for the next production step) Overproduction (production ahead of demand) Over Processing (resulting from poor tool or product design creating activity) Defects (the effort involved in inspecting for and fixing defects)
1.2 Lean Goals & Strategy

The espoused goals of Lean manufacturing systems differ between various authors. While some maintain an internal focus, e.g. to increase profit for the organization others claim that improvements should be done for the sake of the customer Some commonly mentioned goals are: Improve quality: To stay competitive in today's marketplace, a company must understand its customers' wants and needs and design processes to meet their expectations and requirements. Eliminate waste: Waste is any activity that consumes time, resources, or space but does not add any value to the product or service. Reduce time: Reducing the time it takes to finish an activity from start to finish is one of the most effective ways to eliminate waste and lower costs. Reduce total costs: To minimize cost, a company must produce only to customer demand. Overproduction increases a companys inventory costs because of storage needs.
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The strategic elements of Lean can be quite complex, and comprise multiple elements. Four different notions of Lean have been identified
Lean as a fixed state or goal (Being Lean) Lean as a continuous change process (Becoming Lean) Lean as a set of tools or methods (Doing Lean/Toolbox Lean) Lean as a philosophy (Lean thinking)
1.3 Concepts to Achieve Lean

The five-step thought process for guiding the implementation of lean techniques is easy to remember, but not always easy to achieve: Specify value from the standpoint of the end customer by product family. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. As flow is introduced, let customers pull value from the next upstream activity. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.
Fig 1.1
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1.4 Benefits of Lean Manufacturing

Lean Manufacturing is a business improvement philosophy that has developed over many years, it is a method to better focus your business on the true needs of the customer to help you prevent waste from being built into your system. The benefits of Lean manufacturing are many; Improved Customer Service; delivering exactly what the customer wants when they want it. Improved Productivity; Improvements in throughput and value add per person. Quality; Reductions in defects and rework. Innovation; staff are fully involved so improved morale and participation in the business Reduced Waste; Less transport, moving, waiting, space, and physical waste. Improved Lead Times; Business able to respond quicker, quicker set ups, fewer delays. Improved Stock Turns; Less work in progress and Inventory, so less capital tied up.
All of the above have financial impacts on your business, as well as helping you become a business that can better react to and meet your customer's needs.
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In addition to this lean will reduce your internal costs, your processes will be more efficient, less wasteful. You will have less of your businesses cash tied up in wasteful inventory and work in progress enabling you to spend it where you want. Lean will improve your staffs morale as they become more and more involved in your business and improving what you do, their motivation will improve dramatically.
1.5 Failure Mode & Effect Analysis

A Failure Modes and Effects Analysis (FMEA) is a procedure in product development, systems engineering and operations management for analysis of potential failure modes within a system for classification by the severity and likelihood of the failures. A successful FMEA activity helps a team to identify potential failure modes based on past experience with similar products or processes, enabling the team to design those failures out of the system with the minimum of effort and resource expenditure, thereby reducing development time and costs. Because it forces a review of functions and functional requirements, it also serves as a form of design review. It is widely used in manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry. Failure modes are any errors or defects in a process, design, or item, especially those that affect the intended function of the product and or process, and can be potential or actual. Effects analysis refers to studying the consequences of those failures.
In general, Failure Modes, Effects and Criticality Analysis (FMEA / FMECA) requires the identification of the following basic information:

Item(s) Function(s) Failure(s) Effect(s) of Failure Cause(s) of Failure Current Control(s) Recommended Action(s) Plus other relevant details
Most analyses of this type also include some method to assess the risk associated with the issues identified during the analysis and to prioritize corrective actions. Two common methods include:
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Risk Priority Numbers (RPNs) Criticality Analysis (FMEA with Criticality Analysis = FMECA)
1.5.1 Basic Terms

Failure The loss of an intended function of a device under stated conditions. Failure Mode The manner by which a failure is observed; it generally describes the way the failure occurs. Failure Effect Immediate consequences of a failure on operation, function or functionality, or status of some item Indenture Levels An identifier for item complexity. Complexity increases as levels are closer to one. Local Effect The failure effect as it applies to the item under analysis. Next Higher Level Effect The failure effect as it applies at the next higher indenture level. End Effect The failure effect at the highest indenture level or total system. Failure Cause Defects in design, process, quality, or part application, which are the underlying cause of the failure or that initiate a process that leads to failure. Severity The consequences of a failure mode. Severity considers the worst potential consequence of a failure, determined by the degree of injury, property damage, or system damage that could ultimately occur.
Fig 1.2
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1.5.2 Pre Work

The process for conducting an FMEA is typically developed in three main phases, in which appropriate actions need to be defined. Before starting with an FMEA, several other techniques are frequently employed to ensure that robustness and history are included in the analysis. A robustness analysis can be obtained from interface matrices, boundary diagrams, and parameter diagrams. Failures are often found from external 'noise factors' and from shared interfaces with other parts and/or systems. Typically, a description of the system and its function is developed, considering both intentional and unintentional uses. A block diagram of the system is often created for inclusion with the FMEA, giving an overview of the major components or process steps and how they are related. These are called logical relations around which the FMEA can be developed. The primary FME document or 'worksheet' lists all of the items or functions of the system in a logical manner, typically based on the block diagram.
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1.5.3 Sample Worksheet

Example FMEA Worksheet
RPN Potential Item / Potential Effects of (severity Function Failure mode Failure rating) Cause(s) rating) S Potential (occurrence controls rating) number) O Current (detection characteristic priority actions D CRIT (critical (risk Recommended
Responsibility and target completion date Action New New New New taken S O D RPN
Fill tub
High level sensor is
Liquid spills on
sensor is exposed at top and can be easily disconnected by user
Fill timeout based on time to fill to low level sense
80
Perform cost analysis of adding additional sensor halfway between low and high level sensors to calculate fill rate at mid-point and determine max fill volume in case high level
Jane Doe 15-May-2012
disconnected customer floor
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sensor is disconnected
1.6 Basic Analysis Procedure for FMEA Or FMECA The basic steps for performing an Failure Mode and Effects Analysis (FMEA) or Failure Modes, Effects and Criticality Analysis (FMECA) include

Assemble the team. Establish the ground rules. Gather and review relevant information. Identify the item(s) or process(es) to be analyzed. Identify the function(s), failure(s), effect(s), cause(s) and control(s) for each item or process to be analyzed. Evaluate the risk associated with the issues identified by the analysis. Prioritize and assign corrective actions. Perform corrective actions and re-evaluate risk. Distribute, review and update the analysis, as appropriate.
1.7 Risk Evaluation Methods A typical failure modes and effects analysis incorporates some method to evaluate the risk associated with the potential problems identified through the analysis. The two most common methods, Risk Priority Numbers and Criticality Analysis, are described next. Risk Priority Numbers To use the Risk Priority Number (RPN) method to assess risk, the analysis team must:

Rate the severity of each effect of failure. Rate the likelihood of occurrence for each cause of failure. Rate the likelihood of prior detection for each cause of failure (i.e. the likelihood of detecting Calculate the RPN by obtaining the product of the three ratings:
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the problem before it reaches the end user or customer).
RPN = Severity x Occurrence x Detection The RPN can then be used to compare issues within the analysis and to prioritize problems for corrective action. This risk assessment method is commonly associated with Failure Mode and Effects Analysis (FMEA). Criticality Analysis The MIL-STD-1629A document describes two types of criticality analysis: quantitative and qualitative. To use the quantitative criticality analysis method, the analysis team must:
Define the reliability/unreliability for each item and use it to estimate the expected number of Identify the portion of the items unreliability that can be attributed to each potential failure Rate the probability of loss (or severity) that will result from each failure mode that may occur. Calculate the criticality for each potential failure mode by obtaining the product of the three
failures at a given operating time.
mode.

factors: Mode Criticality = Expected Failures x Mode Ratio of Unreliability x Probability of Loss
Calculate the criticality for each item by obtaining the sum of the criticalities for each failure
mode that has been identified for the item. Item Criticality = SUM of Mode Criticalities To use the qualitative criticality analysis method to evaluate risk and prioritize corrective actions, the analysis team must:
Rate the severity of the potential effects of failure. Rate the likelihood of occurrence for each potential failure mode. Compare failure modes via a Criticality Matrix, which identifies severity on the horizontal axis
and occurrence on the vertical axis. These risk assessment methods are commonly associated with Failure Modes, Effects and Criticality Analysis (FMECA).
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CHAPTER 2 REVIEW OF LITERATURE & RESEARCH DESIGN

2.1 Introduction Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. basically - using techniques to cut down waste in a business thereby improving efficiency . Essentially, lean is centered on preserving value with less work. Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990.TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved. The steady growth of Toyota, from a small company to the world's largest automaker has focused attention on how it has achieved this. Lean manufacturing is a variation on the theme of efficiency based on optimizing flow. Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale.
2.1.1 Origin of Lean: Lean principles come from the Japanese manufacturing industry. The term was first coined by John Krafcik in a Fall 1988 article, "Triumph of the Lean Production System," published in the Sloan Management Review and based on his master's thesis at the MIT Sloan School of Management. ] Krafcik had been a quality engineer in the Toyota-GM NUMMI joint venture in California before coming to MIT for MBA studies. Krafcik's research was continued by the International Motor Vehicle Program (IMVP) at MIT, which produced the international best-seller book co-authored by Jim Womack, Daniel Jones, and Daniel Roos called The Machine That Changed the World. A complete historical account of the IMVP and how the term "lean" was coined is given by Holweg (2007). For many, Lean is the set of "tools" that assist in the identification and steady elimination of waste (muda). As waste is eliminated quality improves while production time and cost are reduced. Examples of such "tools" are Value Stream Mapping, Five S, Kanban (pull systems), and pokayoke (error-proofing). There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to improve flow include production leveling, "pull" production (by means of kanban) and the Heijunka box. This is a fundamentally different approach from most improvement methodologies, which may partially account for its lack of popularity. The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. The advantage claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste focus sometimes wrongly assumes this perspective. Both Lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste. [5] These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. The disconnected nature of some of these principles perhaps springs from the fact that the TPS has grown pragmatically since 1948 as it responded to the problems it saw within its own production facilities. Thus what one sees today is the result of a 'need' driven learning to improve where each step has built on previous ideas and not something based upon a theoretical framework. Toyota's view is that the main method of Lean is not the tools, but the reduction of three types of waste: muda ("non-value-adding work"), muri ("overburden"), and mura ("unevenness"), to expose
problems systematically and to use the tools where the ideal cannot be achieved. From this perspective, the tools are workarounds adapted to different situations, which explains any apparent incoherence of the principles above. Also known as the flexible mass production, the TPS has two pillar concepts: Just-in-time (JIT) or "flow", and "autonomation" (smart automation). Adherents of the Toyota approach would say that the smooth flowing delivery of value achieves all the other improvements as side-effects. If production flows perfectly then there is no inventory; if customer valued features are the only ones produced, then product design is simplified and effort is only expended on features the customer values. The other of the two TPS pillars is the very human aspect of autonomation, whereby automation is achieved with a human touch. The "human touch" here meaning to automate so that the machines/systems are designed to aid humans in focusing on what the humans do best. This aims, for example, to give the machines enough intelligence to recognize when they are working abnormally and flag this for human attention. Thus, in this case, humans would not have to monitor normal production and only have to focus on abnormal, or fault, conditions. Lean implementation is therefore focused on getting the right things to the right place at the right time in the right quantity to achieve perfect work flow, while minimizing waste and being flexible and able to change. These concepts of flexibility and change are principally required to allow production leveling, using tools like SMED, but have their analogues in other processes such as research and development (R&D). The flexibility and ability to change are within bounds and not open-ended, and therefore often not expensive capability requirements. More importantly, all of these concepts have to be understood, appreciated, and embraced by the actual employees who build the products and therefore own the processes that deliver the value. The cultural and managerial aspects of Lean are possibly more important than the actual tools or methodologies of production itself. There are many examples of Lean tool implementation without sustained benefit, and these are often blamed on weak understanding of Lean throughout the whole organization. Lean aims to make the work simple enough to understand, do and manage. To achieve these three goals at once there is a belief held by some that Toyota's mentoring process,(loosely called Senpai and Kohai, which is Japanese for senior and junior), is one of the best ways to foster Lean Thinking up and down the organizational structure. This is the process undertaken by Toyota as it helps its suppliers improve their own production. The closest equivalent to Toyota's mentoring process is the concept of "Lean Sensei," which encourages companies, organizations, and teams to seek outside, third-party experts, who can provide unbiased advice and coaching, (see Womack et al., Lean Thinking, 1998). There have been recent attempts to link Lean to Service Management, perhaps one of the most recent and spectacular of which was London Heathrow Airport's Terminal. This particular case provides a
graphic example of how care should be taken in translating successful practices from one context (production) to another (services), expecting the same results. In this case the public perception is more of a spectacular failure, than a spectacular success, resulting in potentially an unfair tainting of the lean manufacturing philosophies.
2.2 Review Of Literature
On January 30th 1997, a study was conducted by Auston Marmaduke Kilpatrick from the department of B.S. Mechanical Engineering, University of California, Los Angeles on the title of Lean Manufacturing Principles: A Comprehensive Framework for Improving Production Efficiency. His major findings were on the factors which contribute to Internal Defect Costs, External Defect Costs, Escapes, Backlog of ordered units, Changeover time and on time delivery percentage His conclusion was that we now define Tall as the length of time the customer is willing to wait for product after having paid for the order. We will call Tall the allowable lead time for post payment production. For some products this may be close to zero. However, for many products, such as prepared food, cars, and all items that are sold through catalogues, Tall ranges from a few weeks to two years. For most products, the order lead time (OLT) using traditional manufacturing methods is much longer than Tall. As long as the OLT is longer than Tall, it is necessary for factories and sales rooms to carry an inventory of finished goods which the customer can obtain product within Tall. The factory must then produce to fill this inventory. On July 2009, a Study was conducted on Lean Manufacturing Implementation in the Malaysian Electrical and Electronics Industry by Yu Cheng Wong from the Department of Manufacturing and Industrial Engineering. His major findings were on the descriptive statistics for the respondent companies in terms of their sizes, types of industry and the number of years for which they have adopted lean manufacturing. It can be seen that only 31.82% were from Small and Medium Enterprises (SMEs) while the remainder was large organizations. The classification of companies size was based on the definition provided by the Malaysian National SME Development Council (2005). In this research, large companies are those that have more than 150 employees in total. Apparently, there are more large organizations than SMEs which have implemented lean manufacturing.
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He concluded that the companies are found to have a good Understanding of lean manufacturing, and since its implementation, they have gained many benefits such as reduced cost and improved productivity. It is also apparent that the companies have Implemented various tools and techniques to support lean manufacturing, and they do not adopt a single tool in isolation. In order to assess the extent to which they have implemented lean. On August 2007, Jostein Pettersen a student at the Division of Quality Technology and Management & Helix VINN Excellence Centre Linkping University, Sweden, has conducted a study on Defining Lean Production: Some conceptual and practical issues. He founded that in the paper that there is no consensus on a definition of Lean Production between the examined authors. The authors also seem to have different opinions on which characteristics that should be associated with the concept. Overall it can be concluded that Lean Production is not clearly defined in the reviewed literature. This divergence can cause some confusion on a theoretical level, but is probably more problematic on a practical level when organizations aim to implement the concept. This paper argues that it is important for an organization to acknowledge the different variations, and to raise the awareness of the input in the implementation process. It is further argued that the organization should not accept any random variant of Lean, but make active choices and adapt the concept to suit the organizations needs. Through this process of adaptation, the organization will be able to increase the odds of performing a predictable and successful implementation. He concluded that There is no agreed upon definition of Lean that could be found in the reviewed literature, and the formulations of the overall purpose of the concept are divergent. Discomforting as this may seem for Lean proponents, there seems to be quite good agreement on the characteristics that define the concept, leading to the conclusion that the concept is defined in operational terms alone. Formulating a definition that captures all the dimensions of Lean is a formidable challenge. 2.3 Statement of The Problem TVS SRI CHAKRA Tyres, the Export department is facing frequent scraps of TRUCK tyres. A single tyre scrap leads to loses in Direct cost (Rs50,000), Labour cost, Machine Productive time (Thread Extruder , Bais cutting, Bead winding, Tyre Building, Curing etc). This study at TVS SRICHAKRA has been done to identify problems faced in the Export Department particularly in the Curing section and thereby to analyze, control and eliminate the occurrence of such problems leading to continuous improvement.
2.4 Scope of Study The scope of the study is to focus on cost reduction and time reduction at Curing section in exports department by identifying and eliminating non-value added activities that takes place in the export department at TVS Sri Chakra tires. To identify the scope towards the implementation of lean in manufacturing organizations and its needs. It also brings into notice about the critical factors responsible for the failure causes. 2.5 Objective of the Study
To understand the different types processes involved in the manufacturing of tires in TVS Sri Chakra. To understand the application of FMEA in achieving Lean manufacturing. To acquire knowledge about implementation of Lean practices. To identify the factors leading to scrap in the CURING section. To work towards continuous improvement.
2.6 Operational Definitions of the Concept Lean Manufacturing: Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale. Waste: Waste may be defined as any product, process or time which doesnt add value to the end product and the customers. Failure The loss of an intended function of a device under stated conditions.
Failure Mode
The manner by which a failure is observed; it generally describes the way the failure occurs.
Failure Effect Immediate consequences of a failure on operation, function or functionality, or status of some item.
Indenture Levels An identifier for item complexity. Complexity increases as levels are closer to one.
Local Effect The failure effect as it applies to the item under analysis.
Next Higher Level Effect The failure effect as it applies at the next higher indenture level.
End Effect The failure effect at the highest indenture level or total system.
Failure Cause Defects in design, process, quality, or part application, which are the underlying cause of the failure or that initiate a process that leads to failure.
Severity The consequences of a failure mode. Severity considers the worst potential consequence of a failure, determined by the degree of injury, property damage, or system damage that could ultimately occur.
2.7 Methodology of Research Type of Research The type of research conducted in the study is a Applied Research
1) Application of knowledge to a case
2) Find alternative 3) Testing theory 4) Contribute new facts 2.7.1 Sources of Data Primary Data Primary data has been collected from a structured observation from real time workers in the shop floor at the Exports Department. Interacting with all the sections labours and Engineers at TVS SRI CHAKRA. Secondary Data Secondary datas has been collected from the companys website and other relevant websites like www.systems2win.com, www.leanmanufacturingshop.com, www.lssacademy.com and Production & Operations management books. 2.8 Limitations Of Study Since FMEA is effectively dependent on the members of the committee which examines product failures, it is limited by their experience of previous failures. If a failure mode cannot be identified, then external help is needed from consultants who are aware of the many different types of product failure.
FMEA is thus part of a larger system of quality control, where documentation is vital to implementation. General texts and detailed publications are available in forensic engineering and failure analysis. It is a general requirement of many specific national and international standards that FMEA is used in evaluating product integrity. If used as a topdown tool, FMEA may only identify major failure modes in a system.
Fault tree analysis (FTA) is better suited for "top-down" analysis. When used as a "bottom-up" tool FMEA can augment or complement FTA and identify many more causes and failure modes resulting in top-level symptoms. It is not able to discover complex failure modes
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involving multiple failures within a subsystem, or to report expected failure intervals of particular failure modes up to the upper level subsystem or system.
Additionally, the multiplication of the severity, occurrence and detection rankings may result in rank reversals, where a less serious failure mode receives a higher RPN than a more serious failure mode. The reason for this is that the rankings are ordinal scale numbers, and multiplication is not defined for ordinal numbers. The ordinal rankings only say that one ranking is better or worse than another, but not by how much. For instance, a ranking of "2" may not be twice as severe as a ranking of "1," or an "8" may not be twice as severe as a "4," but multiplication treats them as though they are. See Level of measurement for further discussion.
2.9 Chapter Scheme

CHAPTER 1 INTRODUCTION: This chapter deals with the theoretical background of the study throwing light on the introduction to lean concepts ,Goals, strategies, benefits, FMEA analysis and its application. CHAPTER 2 RESEARCH DESIGN: This chapter states the problem of the study; the objectives of the study, the scope, methodology, tools for collecting data, a plan of analysis, and the limitations of the study. The chapter also includes the operational definitions of the terms commonly used in the study, along with which the chapter scheme is included. CHAPTER 3 INDUSTRY PROFILE: This chapter gives information on Indian Tyre industry, an overview of TVS groups and Srichakra TVS.
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION:
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This chapter deals with analysis and interpretation of the data collected. The purpose of this chapter is to find the failure mode in Curing section, Types of defects identified in Exports department at Curing section at the month of April, Reasons behind the failure mode and the formation of FMEA chart. CHAPTER 5 FINDINGS AND SUGGESTIONS, FURTHER SCOPE FOR STUDY This chapter deals with the overall findings and suggestion which are drawn based on the study of Improvement measures at Sri Chakra TVS, Lean Concepts and FMEA chart. CHAPTER 6CONCLUSION This chapter is the concluding chapter dealing with giving conclusion based on the Effectiveness of Lean and also on FMEA chart.
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CHAPTER 3 INDUSTRY PROFILE:

3.1 An Introduction to the Indian Tyre Industry The Rs.20,000 crore Indian Tyre Industry, is highly raw material intensive and predominantly a Cross Ply (or Bias) tyre manufacturing industry. It is highly concentrated wherein 10 large manufacturers account for over 95% of the total tonnage production of 11.35 lakh M.T. It produces all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demand domestically.
3.2 Key Influencers The level of economic activity, performance of domestic automotive industry, and the faring of the transport sector directly influence the performance of the tyre industry in India. With the replacement segment dominating the overall tyre demand, the industry remains inherently vulnerable to economic cycles. While radialisation has become the norm in the passenger car segment, in the bus and truck tyre segment, its acceptance is still limited. Bus and truck radialisation could emerge in the long term as the quality of roads improves and the restrictions on overloading are better enforced. The practice of re-treading, which is gaining increasing acceptance, could pose a challenge to replacement demand in the medium term. The ability of the re-treading sector to capture potential replacement demand would depend on the awareness among customers (of the benefits of retreading) and also the quality of retreading done. Given the low levels of penetration of two-wheelers and passenger cars in the country, OEM demand is likely to increase, which in turn would push up replacement demand with a lag. Slowdown in automotive industry and global economy in general negatively impacted the Indian tyre industry in 2009. The industry tonnage growth was only 2.19% during first nine months of FY 2009, compared to 7.38% growth experienced during the same period last year. Demand side was also severely affected as almost all auto manufacturers were forced to adjust their production last year.
3.3 Role of Marketing
Over the years, tyre manufacturers have developed a vast marketing network using dealers and depots and as such all types of tyres are now easily available even in the remotest corners of the country. No doubt, international auto majors in India now roll out their vehicles using Indian manufactured tyres.
3.4Sales and Profitability The Indian Tyre Industry produced 821 lakh units of tyres garnering approximately Rs. 21,000 crore in FY 2009 -2010. The top players are now focusing on branding their products and strengthening their distribution network so as to increase their market share. The industry derives its demand from the automobile Industry. While the OEM (Original Equipment Manufacturers) market off take is dependent on the new vehicle sales, replacement market demand depends on the total population of vehicles on road, road conditions, vehicle scrapping rules, overloading norms for trucks, average life of tyres and prevalence of tyre retreading.
3.5 Trends in Past years As the economy in general; and automobile industry in specific slowed down in FY 2009, the tyre demand too came under pressure. The industry production registered a 5 year CAGR of 6.44% between FY 04-09. The largest category of Truck & Bus tyres recorded a 5 year CAGR of 2.96% (slower than the industry average) while Light Commercial Vehicle (LCV), motorcycle and car tyre categories grew at 6.07%, 10.70% and 6.90% respectively (relatively faster than the industry average). Off the Road (OTR) tyre category (customized tyres) which fetches a higher margin compared to other tyre categories, was the fastest growing. The OTR tyre category had registered a 5 year CAGR of over 8.85% in the last five years. Most of the top players increased their capacity
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Also in the face of global slowdown and stiff Chinese competition, the export market off take declined by 9.82% during this period.
On the face of demand-side pressures, the tyre industry saw production adjustments from all the major players in the last couple of months. The government too tried to provide external stimulus by effecting 6% excise duty cut across industries (the excise duty for tyres was brought down from 14% to 10% w.e.f. December 7, 2008, and then further reduced to 8% w.e.f. February 25,2009). In all the gloom; one silver lining for the industry was the easing of the raw material prices from September 2008 onwards. However, their future movement still remains uncertain. Based on data from the Rubber Board, natural rubber prices have risen about 50% in the last 6-7 months. In fact, prices in the Indian market are presently ruling 5-6% higher than the same in international markets. As a result, tyre makers are facing significant rise in cost production. This has forced the industry to begin hiking prices in an attempt to keep the already thin margins intact. Tyre majors have already hiked prices. Moreover, due to shortfall in domestic supply and increasing gap between domestic and international prices of rubber, the tyre manufacturers have increased the import of natural rubber. According to estimates by Automotive Tyre Manufacturers Association (ATMA), tyre producers are likely to import 50% of their total natural rubber consumption due to tight domestic supply. With profitability of tyre companies having a strong correlation to raw material prices and as these companies operate on thin margins, this would remain an area of concern. 3.6 Current status & Future Trends As regards to the demand scenario, the poor demand growth in FY 2009 - 2010 was primarily on account of decline in OEM production. Continuation of poor volume growth could affect the profitability further. Despite these challenges, according to CARE (Credit Rating & Research) Ltd., while the industry may register a low tonnage growth in FY 2009, the long term prospective seems to be bright. They expect the industry to experience a CAGR of approximately 8.21% between FY08 to FY13. Automotive companies have started experiencing increasing sales and raw material prices are stabilizing which will boost tyre sales over the coming months. However, experts suggest there
will be some time lag before profitability. 3.7 Towards the Future Radialisation in India
Radialisation in India though in its infancy in T&B tyre category; is making inroads. Most manufacturers have capex plans for radial T&B tyres with no new capacity being added for bias tyres. This indicates that the industry foresees radialisation to take further hold in the T&B tyre category. "Rate of radialisation is actually an index of the status of road development, vehicle engineering and the economy in general". Notwithstanding the problem areas, constraints and limitations, the tyre companies have kept pace with the technological improvements the world. Radialisation can be aptly classified as the most important innovation in tyre technology. Despite its several advantages (additional mileage; fuel saving; improved driving) radialisation in India earlier did not catch on at a pace that was expected, since its introduction way back in 1978. This could be attributed due to several factors, viz. Indian roads generally not being suitable for ideal plying of radial tyres; (older) vehicles produced in India not having suitable geometry for fitment of radial tyres (and hence the general, and wrong, perception that radial tyres are not required for Indian vehicle; unwillingness of consumer to pay higher price for radial tyres etc. However, the situation has radically changed in recent years, especially for the passenger car tyre segment where radialisation has crossed 98% mark and is expected to reach 100% in two to three years. In the Medium and Heavy Commercial vehical segment current level of radialisation is upto 8%, and that in the LCV segment is estimated at 18%. A few years back a beginning was made in Radialisation of truck and bus and LCV tyres and this process is gaining momentum. that radialisation signifies and offer state-of-the-art product (tyres), comparable to the best in
Page 24
3.8 Major Players and Market Shares
Fig no 3.1
majo players include r MRF
Ltd. which is the
marke leader (22% market share) t by Apollo Tyres Ltd. closel (21%). y majo players are JK r Tyre (18%) Ceat Ltd. , (13%),
21
followed The other

5
MRF Tyres Apollo Tyres
& Industries Ltd. Birla Tyres (10%),

10
4 22
J.K. Tyres
Ceat
Goodyear (7%) and Bridgestone (5%). On an average, 55% of the production is for replacement market, followed by 29.8% sold to OEMs directly and the remaining is exported.
13
Birla
18
Goodye ar Bridges tone Oth
Page 25
3.9 Swot Analysis for the Tyre Industry

Strengths
Established brand names (key in the replacement market)
Extensive distribution networks - For example, Apollo Tyres has more than 118
district offices, 12 distribution centres and 4,250 dealers.
Good R&D initiatives by top players.
Weaknesses
Cost Pressures - The profitability of the industry has high correlation with the prices
of key raw materials such as rubber and crude oil, as they account for more than 70% of the total costs.
Pricing Pressures The huge raw material costs have resulted in pressure on the
realisations and hence, the players have been vouching to increase the prices, although, due to competitive pressures, they have not been able to pass on the entire increase to the customer.
Highly capital intensive - It requires about Rs 4 billion to set up a radial tyre plant
with a capacity of 1.5 million tyres and around Rs 1.5-2 billion, for a cross-ply tyre plant of a 1.5 million tyre-manufacturing capacity.
Opportunities
Growing Economy leads to Growing Automobile Industry leads to Increasing OEM
demand that in turn leads to Subsequent rise in replacement demand.
With continued emphasis being placed by the Central Government on development
of infrastructure, particularly roads, agricultural and manufacturing sectors, the Indian economy and the automobile sector/ tyre industry are poised for an impressive growth. Creation of road infrastructure has given, and would increasingly give, a tremendous fillip to road transportation, in the coming years. The Tyre industry would play an important role in this changing road transportation dynamics.
Access to global sources for raw materials at competitive prices, due to economies
of scale. Steady increase in radial Tyres for MHCVs and LCVs. Threats

Continuous increase in prices of natural rubber, which accounts for nearly one Cheaper imports of Tyres, especially from China, selling at very low prices,
third of total raw material costs. have been posing a challenge. The landed price is approximately 25% lower than that of the corresponding Indian Truck/ LCV tyres. Imports from China now constitute around 5% of market share.
With crude prices scaling upwards, added pressure on raw material prices is
expected Ban on Overloading, leading to lesser wear and tear of tyres and subsequent slowdown in demand. However, this would only be a short-term negative.
Cyclical
nature
of
automobile
industry.
3.10 COMPANY PROFILE TVS Group is one of Indias oldest business groups. It is a giant conglomerate with presence in diverse fields like automotive component manufacturing, automotive dealerships and electronics. Today, there are over thirty companies in the TVS Group, employing more than 40,000 people worldwide and with a turnover in excess of USD 2.2 billion. TVS Group originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limited are the parent and holding company of the TVS Group. TV Sundaram Iyengar and Sons Limited have the following three divisions. TVS AND SONS TVS and Sons is the largest automobile distribution company in India. It distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier automotive companies like AshokLeyland, Mahindra and Mahindra Ltd., and Honda. SUNDARAM MOTORS Sundaram Motors distributes Heavy Duty Commercial Vehicles, Cars, and auto spare parts for several leading manufacturers. The company is also the dealer for Ashok Leyland, Honda, Fiat, Ford and Mercedes Benz. MADRAS AUTO SERVICE Madras Auto Service distributes automotive spare parts for all leading manufacturers. OTHER MAJOR COMPANIES TVS Motor Company Limited is one of the largest two-wheeler manufacturers in India. It manufactures Motorcycles. BREAKES INDIA LIMITED Brakes India is a joint venture between T V Sundaram Iyengar and Sons Ltd., and Lucas Industries Plc., UK. The company manufactures braking equipment for automotive and nonautomotive applications.
SUNDARAM POLYMERS DIVISION Sundaram Polymers Division manufactures Engineering Plastic compounds for various applications. HARITA FINANCE LIMITED Harita Finance Ltd. is a finance company under the TVS Group. It deals in retail finance, hire purchase, leasing and bill discounting. INDIA NIPPON ELECTRICALS LIMITED It is a joint venture between Lucas Indian Service and Kokusan Denki Co Ltd., Japan. The Company manufactures Electronic Ignition Systems for two wheelers and portable gensets. IRIZAR TVS (P) TD IRIZAR TVS (P) Ltd., is a joint venture between Sundaram Industries Ltd., Ashok Leyland Ltd., and IRIZAR S. Co-op of Spain. The company builds bus bodies for export and domestic market. LAKSHMI AUTO COMPONENTS LIMITED The company is a subsidiary of TVS-Suzuki. It manufactures gears, crankshafts and connecting rods for TVS-Suzuki motorbikes and mopeds. LUCAS INDIA SERVICE Lucas Indian Service is a wholly owned subsidiary of Lucas-TVS Ltd., engaged in the sales and service of auto-electrical and fuel injection equipment. SUNDARAM-CLAYTON LIMITED Sundaram - Clayton Ltd., manufactures complete range of air brake actuation system compressors, actuators, valves, brake chambers, spring brakes, slack adjusters, couplings, hoses, switches and vacuum boosters for light, medium and heavy commercial vehicles and trailer. Foundry Division manufactures aluminum gravity and pressure die-castings.
TVS SRICHAKRA TYRES TVS Srichakra is one of the leading two and three-wheeler tyre manufacturer in India rolling out over 11 million tyres per annum. Company is part of US $5 billion TVS Auto Ancillary group, which is largest in India. Incorporated in 1982, the company manufactures a complete range of Two and Three wheeler Tyres and Tubes for the domestic market and Industrial Pneumatic tyres, Farm & Implements tyres, Skid steer tyres, Multipurpose tyres, Floatation tyres etc., for the export market, at its state-of-art manufacturing facility at Madurai in Tamilnadu. Spread over an area of 2.5 lakhs Sq.mts. The manufacturing unit at Madurai employees over 2000 people. TVS Tyres is one of the major suppliers to all leading original equipment manufacturers namely TVS Motors, Hero Honda, Bajaj Auto and Yamaha Motors and has a strong network of over 2050 dealers and 23 depots across the country to cater to the aftermarket. The company is a global player, exporting to USA, Europe, Africa, South America and South East Asia. Accredited on 1996 with ISO 9001 certifications, TVS tyres adopted strong quality standards from its inception and these benchmarks were further strengthened with the certification of ISO 14001.The company has other practices like Six Sigma and Lean Manufacturing Techniques in place to abide by their high quality standards. TVS tyres were also the winner of the prestigious TPM Excellence Award in 2003 and TPM Consistency Award in 2005.
3.11 Tyre Manufacturing Pneumatic tyres are manufactured according to relatively standardized processes and machinery, in around 450 tyre factories and the world. With over 1 billion tyres manufactured worldwide annually, the tyre industry is the major consumer of natural rubber. Tyre factories start with bulk raw materials such as rubber, carbon black, and chemicals and produce numerous specialized components that are assembled and cured.
This article describes the components assembled to make a tyre, the various materials used, the manufacturing processes and machinery, and the overall business model. Fig 3.2 Inner view of tyre
The tyre is an assembly of numerous components as shown in figure 2 which are then built up on a drum and then cured in a press under heat and pressure. Heat facilitates a polymerization reaction that crosses links rubber monomers to create long elastic molecules. These polymers create the elastic quality that permits the tyre to be compressed in the area where the tyre contacts the road surface and spring back to its original shape under high-frequency cycles.
Inner Liner The inner liner is an extruded halo buty1 rubber sheet compounded with additives that result in low air permeability. The inner liner assures that the tyre will hold highpressure air inside, without the air gradually diffusing through the rubber structure. Body Ply The body ply is a calendared sheet consisting of one layer of rubber one layer of reinforcing fabric, and a second layer of rubber. The earliest textile used was cotton; later
materials include rayon, polyester, and Kevlar. Passenger tyres typically have one or two body plies. Body plies give the tyre structure strength. Beads Beads are bands of high tensile-strength steel wire encased in a rubber compound. Bead wire is coated with special alloys of bronze or brass that protects the steel from corrosion. Beads are inflexible and inelastic, and provide the mechanical strength to fit the tyre to the wheel. Apex The apex is a triangular extruded profile that mates against the bead. The apex provides a cushion between the rigid bead and the flexible inner liner and body ply assembly. Belt Package Belts are calendared sheets consisting of a layer of rubber, a layer of closely spaced steel cords, and a second layer of rubber. The steel cords are oriented radially in radial tyre construction, and at opposing angles in bias tyre construction. Belts give the tyre strength and dent resistance while allowing it to remain flexible. Passenger tyres are usually made with two or three belts. Tread The tread is a thick extruded profile that surrounds the tyre carcass. Tread compounds include additives to impart wear resistance and traction in addition to environmental resistance. The tread is the part of the tyre which comes in contact with the road surface. The tread is a thick rubber, or rubber/composite compound formulated to provide an appropriate level of traction that does not wear away too quickly. The tread pattern is characterized by the geometrical shape of the grooves, lugs, voids and sipes.
Tread wear
The tread wear grade describes how long the tyre manufacturers expect the tyre to last. A Course Monitoring tyre (the standard tyre that a test tyre will be compared to) has a rating of 100. If a manufacturer assigns a tread wear rating of 200 to a new tyre, they are indicating that they expect the new tyre to have a useful lifespan that is 200% of the life of a Course Monitoring tyre. The test tyres are all manufacturer dependant. Brand As rating of 500 is not necessarily going to give you the same mileage rating as Brand Bs tyre of the same rating. Tread Lug Tread lugs provide the contact surface necessary to provide traction. As the treadlug enters the road contact area, or footprint, it is compressed. As it rotates through the footprint it is deformed circumferentially. As it exits the footprint, it recovers to its original shape. Tread Void Tread voids provide space for the lug to flex and deform as it enters and exits the footprint. Voids also provide channels for rainwater, mud, and snow to be channeled away from the footprint. The void ratio is the void area of the tyre divided by the tyre tread area. Low void areas have high contact area and therefore higher traction on clean, dry pavement. Rain Groove The rain groove is a design element of the tread pattern specifically arranged to channel water away from the footprint. Rain grooves are circumferential in most truck tyres. Many high performance passenger tyres feature rain grooves that are angled from the centre toward the sides of the tyre. Shoulder The shoulder is that part of the tyre at the edge of the tread as it makes transition to the sidewall.
Sipe Tread lugs often feature small narrow voids, or sipes, that improve the flexibility of the lug to deform as it traverses the footprint area. This reduces in the lug and reduces heat buildup. Sipes also provide greater traction in wet or icy conditions. Contact Patch The Contact patch, or footprint, of the tyre, is merely the area f the tread which is in contact with the road surface. This is the area which transmits forces between the tyre and the road via friction.
Side Wall The side wall is that part of the tyre that bridges between the tread and bead. The sidewall is reinforced with rubber and fabric plies that provide for strength and flexibility. It transmits the torque applied by the drive axle to the tread in order to create traction. Sidewall, in conjunction with the air inflation, also supports the load of the vehicle. Sidewalls are molded with manufacturer-specific detail; government mandated warning labels, and other consumer information, and other consumer information, and sometimes decorative ornamentation, like whitewalls.
Fig 3.3 Sidewall
Inner Tube Almost all bicycle tyres, many motorcycle tyres, and many tyres for large vehicles such as uses, heavy trucks and tractors are designed for use with inner tubes. Inner tubes are torus-shaped balloons made from an impermeable materials, such as soft, elastic synthetic rubber to prevent air leakage.
Wheel
Tyres are mounted to wheels that bolt to the hub. Automotive wheels are typically made from pressed and welded steel, or a composite of lightweight metal alloys, such as aluminum or magnesium. These alloy wheels may be either cast or forged. A decorative hubcap and trim ring may be placed over the wheel. Valve Stem The valve stem is a tube made of steel or rubber with a metal valve used to inflate the tyre with air. Valve stems usually protrude though the wheel for easy access for inflation. Tyres are inflated through a valve, typically a Schrader valve on automobiles and most bicycle tyres, or a Presta valve on high performance bicycles. the rubber in valve stems eventually degrades. Replacement of the valve stem at regular intervals reduces the chance of failure.
Fig. 3.4 Valve Stem
3.12 Manufacturing Process Tyre plans are traditionally divided into five departments that perform special operations. These usually act as independent factories within a factory. Large tyre makers may set up independent factories on a single site, or cluster the factories locally across a region.
Compounding And Mixing
Compounding is the operation of bringing together all the ingredients required to mix a batch of rubber compound. Each component has a different mix of ingredients according to the properties required for that component. Mixing is the process of applying mechanical work to the ingredients in order to blend them into a homogeneous substance. Internal mixers are often equipped with two counter-rotating rotors in a large housing that shear the rubber charge along with the additives. After mixing, the rubber charge is dropped into a chute and fed by an extruding screw into a roller die. Alternatively, the batch can be dropped onto an open rubber mill batch off system. A mill consists of twin counter-rotating rolls, one serrated, that provides additional mechanical working to the rubber and produces a thick rubber sheet. The sheet
is pulled off the rollers in the form of a strip. The strip is cooled, dusted with talc, and laid down into a pallet bin. The ideal compound at this point would have a highly uniform material dispersion; however in practice there is considerable non-uniformity to the dispersion. This is due to several causes, including hot and cold spots in the mixer housing and rotors, excessive rotor clearance, rotor wear, and poorly circulating flow paths. As a result, there can be a little more carbon black here, and a little less there, along with a few clumps of carbon black elsewhere, that are not well mixed with the rubber or the additives. Mixers are often controlled according to the power integration method, where the current flow to the mixer motor is measured, and the mixing terminated upon reaching a specified total amount to mix energy imparted to the batch.
Component Preparation
Components fall into three classes based on manufacturing process: calendaring, extrusion, and bead building. The extruder machine consists of a screw and barrel, screw driver, heaters, and a die. The extruder applies two conditions to the compound: heat and pressure. The extruder screw also provides for additional mixing of the compound through the shearing action of the screw. The compound is pushed through a die, after which the extruded profile is vulcanized in a continuous oven, cooled to terminate the vulcanization process, and either rolled up on a spool or cut to length. Tyre treads are often extruded with four components in a quadraplex extruder, one with four screws processing four different compounds, usually a base compound, core compound, tread wing compound. Extrusion is also sued for sidewall profiles and inner liners. The calendar is a set of multiple large-diameter rolls that squeeze rubber compound into a thin sheet, usually of the order of 2 meters wide. Fabric calendars produce an upper and lower rubber sheet with a layer of fabric in between. Steel calendars do so with steel cords. Calendars are used to produce body plies and belts. A creel room is a facility that
houses hundreds of fabric or wire spools that are fed into the calendar. Calendars utilize downstream equipment for shearing and splicing calendared components.
Tyre Building
Tyre building is the process of assembling all the components onto a tyre building drum. Tyre-building machines (TBM) can be manually operated or fully automatic. Typical TBM operations include the first-stage operation, where inner liner, body plies, and sidewalls are wrapped around the drum, the beads are placed, and the assembly turned up over the bead. In the second stage operation the belt package and tread are applied and the green tyre is inflated and shaped. All components require splicing. Inner liner and body plies are spliced with a square-ended overlap. Tread and sidewall are joined with a skived splice, where the joining ends are bevel-cut. Belts are spliced end to end with nooverlap. Splices that are too heavy or non-symmetrical will generate defects in force variation, balance, or bulge parameters. Splices that are too light or open can lead to visual defects and in some cases tyre failure. The final product of the TBM process is called a green tyre, where green refers to the uncured state. Pirelli tyre developed a special process called MIRS that uses robots to position and rotates the building drums under stations that apply the various components, usually via extrusion and strip winding methods. This permits the equipment to build different tyre sizes in consecutive operations without the need to change tooling or setups. This process is well suited to small volume production with frequent size changes. The largest tyre makers have internally developed automated tyre-assembly machines in an effort to create competitive advantages in tyre construction precision, high production yield, and reduced labor. Nevertheless there is a large base of machine builders who produce tyre-building machines.
Curing
Curing is the process of applying pressure to the green tyre in a mold in order to give it its final shape, and applying heat energy to stimulate the chemical reaction between the
rubber and other materials. In this process the green tyre is automatically transferred onto the lower mold bead seat, a rubber bladder is inserted into the green tyre, and the mold closes while the bladder inflates. As the mold closes and is locked the bladder pressure increases so as to make the green tyre flow into the mold, taking on the tread pattern and sidewall lettering engraved into the mold. the bladder is filled with a recirculation heat transfer medium such as steam, hot water, or insert gas. Temperatures are in the re of 350 degrees Fharenheit with pressures around 350 PSI. Passenger tyres cure in approximately 15 minutes. At the end of cure the pressure is bled down, the mold opened, and the tyre stripped out of the mold. The tyre may be placed n a PCI, lr post-cure inflator, that will hold the tyre fully inflated while it cools. There are two generic curing ress types, mechanical and hydraulic. Mechanical presses hold the mold closed via toggle linkages, while hydraulic presses use hydraulic oil as the prime mover for machine motion, and lock the mold with a breech-lock mechanism. Hydraulic presses have emerged as the most costeffective because the press structure does not have to withstand the mold-opening pressure and can therefore be relatively light weight. There are two generic mold types, two-piece molds and segmental molds. Large off-road tyres are often cured in ovens with cure times approaching 24 hours.
Final Finish
After the tyre has been cured, there are several additional operations.
Tyre
uniformity measurement is a test where the tyre is automatically mounted on wheel halves, inflated, run against a simulated road surface, and measured for force variation. Tyre balance measurement is a test where the tyre is automatically placed on wheel halves, rotated at a high speed and measured for imbalance. Large commercial truck/bus tyres, as well as some passenger and light truck tyres, are inspected by X-ray machines that can penetrate the rubber to analyze the steel cord structure. In the final step, tyres are inspected by human eyes for numerous visual defects such as incomplete mold fill, exposed cords, blisters, blemishes, and others.
3.13 Tyre Manufacturing Process Flow Diagram: Fig no 3.5
CHAPTER 4 ANALYSIS AND INTERPRETATION

4.1 Tools & Techniques For Study Failure Mode & Effect Analysis A failure modes and effects analysis (FMEA) is a procedure in product development, systems engineering and operations management for analysis of potential failure modes within a system for classification by the severity and likelihood of the failures. A successful FMEA activity helps a team to identify potential failure modes based on past experience with similar products or processes, enabling the team to design those failures out of the system with the minimum of effort and resource expenditure, thereby reducing development time and costs. Because it forces a review of functions and functional requirements, it also serves as a form of design review. It is widely used in manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry. Failure modes are any errors or defects in a process, design, or item, especially those that affect the intended function of the product and or process, and can be potential or actual. Effects analysis refers to studying the consequences of those failures. In general, Failure Modes, Effects and Criticality Analysis (FMEA / FMECA) requires the identification of the following basic information:

Item(s) Function(s) Failure(s) Effect(s) of Failure Cause(s) of Failure Current Control(s) Recommended Action(s) Plus other relevant details
Most analyses of this type also include some method to assess the risk associated with the issues identified during the analysis and to prioritize corrective actions. Two common methods include:
Risk Priority Numbers (RPNs) Criticality Analysis (FMEA with Criticality Analysis = FMECA)
Pre Work The process for conducting an FMEA is typically developed in three main phases, in which appropriate actions need to be defined. Before starting with an FMEA, several other techniques are frequently employed to ensure that robustness and history are included in the analysis. A robustness analysis can be obtained from interface matrices, boundary diagrams, and parameter diagrams. Failures are often found from external 'noise factors' and from shared interfaces with other parts and/or systems. Typically, a description of the system and its function is developed, considering both intentional and unintentional uses. A block diagram of the system is often created for inclusion with the FMEA, giving an overview of the major components or process steps and how they are related. These are called logical relations around which the FMEA can be developed.
The primary FME document or 'worksheet' lists all of the items or functions of the system in a logical manner, typically based on the block diagram.
Basic Analysis Procedure For Fmea Or Fmeca The basic steps for performing an Failure Mode and Effects Analysis (FMEA) or Failure Modes, Effects and Criticality Analysis (FMECA) include:

Assemble the team. Establish the ground rules. Gather and review relevant information. Identify the item(s) or process(es) to be analyzed. Identify the function(s), failure(s), effect(s), cause(s) and control(s) for each item or process to be analyzed. Evaluate the risk associated with the issues identified by the analysis. Prioritize and assign corrective actions. Perform corrective actions and re-evaluate risk. Distribute, review and update the analysis, as appropriate.
Risk Evaluation Methods A typical failure modes and effects analysis incorporates some method to evaluate the risk associated with the potential problems identified through the analysis. The two most common methods, Risk Priority Numbers and Criticality Analysis, are described next. Risk Priority Numbers To use the Risk Priority Number (RPN) method to assess risk, the analysis team must:

Rate the severity of each effect of failure. Rate the likelihood of occurrence for each cause of failure. Rate the likelihood of prior detection for each cause of failure (i.e. the likelihood of Calculate the RPN by obtaining the product of the three ratings:
detecting the problem before it reaches the end user or customer).
RPN = Severity x Occurrence x Detection The RPN can then be used to compare issues within the analysis and to prioritize problems for corrective action. This risk assessment method is commonly associated with Failure Mode and Effects Analysis (FMEA). Criticality Analysis The MIL-STD-1629A document describes two types of criticality analysis: quantitative and qualitative. To use the quantitative criticality analysis method, the analysis team must:
Define the reliability/unreliability for each item and use it to estimate the expected number Identify the portion of the items unreliability that can be attributed to each potential failure Rate the probability of loss (or severity) that will result from each failure mode that may Calculate the criticality for each potential failure mode by obtaining the product of the three
of failures at a given operating time.
mode.
occur.
factors: Mode Criticality = Expected Failures x Mode Ratio of Unreliability x Probability of Loss
Calculate the criticality for each item by obtaining the sum of the criticalities for each
failure mode that has been identified for the item. Item Criticality = SUM of Mode Criticalities To use the qualitative criticality analysis method to evaluate risk and prioritize corrective actions, the analysis team must:
Rate the severity of the potential effects of failure. Rate the likelihood of occurrence for each potential failure mode. Compare failure modes via a Criticality Matrix, which identifies severity on the horizontal
axis and occurrence on the vertical axis. These risk assessment methods are commonly associated with Failure Modes, Effects and Criticality Analysis (FMECA).
4.2 Analysis & Interpretation Export Tyre Scrap April 12 Types of Defects Identified in CURING Section
DEFECTS
Bladder cut HW Pressure Drop HP Drop External Under cure OCL Blow Open Mould Bead Under cure OD Variation Heavy flash Cord Grooving Blow Panel Slip Wrong moulding HP Raising problem PCI Burst Side Wall Blow Flash FM Internal Under cure Bead Buckle Blend edge Cord visible SW week PCI Delay HW Not Entry SW Crack Cord Discord Bead Damage Inner Under cure Clamp slip Thin Bead SW Blow Cord Grooving Inner Bearness Under cure Bead Drop
NOS. 65 17 19 7 10 11 8 6 7 6 5 4 4 3 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1
CUM % 31.86 40.20 49.51 52.94 57.84 63.24 67.16 70.10 73.53 76.47 78.92 80.88 82.84 84.31 85.29 86.27 87.25 88.24 89.22 90.20 91.18 92.16 93.14 94.12 94.61 95.10 95.59 96.08 96.57 97.06 97.55 98.04 98.53 99.02 99.51
PPM 3021 790 883 325 465 511 372 279 325 279 232 186 186 139 93 93 93 93 93 93 93 93 93 93 46 46 46 46 46 46 46 46 46 46 46
Ply Blow TOTAL
1 204
100.00
46 9480
No - Number of Defective tyres Cum - Cumulative Percentage of Defects PPM - Parts per Million
4.4 Bar Chart showing the Types of Defects
PRODUCTION PLAN :25273 ACTUAL PRODUCTION:21519 TOTAL SCRAPS:204 Efficency :85.1%
4.3 FMEA Chart
CHAPTER 5 FINDINGS, CONCLUSION & SUGGESTIONS 5.1 Findings
Implementation of Lean Concepts in TVS SRI CHAKRA has helped in understanding the reasons behind customer satisfaction and theoretical profits of the company. The implementation of Lean has helped in reducing the scrap and reducing the lead time of tyre manufacturing so as to provide an improved efficiency. FMEA analysis was carried out and reason behind the occurrence of scrap has been found . The findings, suggestions and conclusion is based on the objectives mentioned in the dissertation work. The Process of the Mother Feeders like Thread extrusion, Bias cutting, Bead winding, Tyre Building and Curing are found to be critical. The productivity of the TVS Sri Chakra has been found to experience a down fall in the past few months. Labours in the shop floor experience Over Burden due to the heat generated in the manufacturing section. The amount of scraps found in all the section of exports department say(Thread extrusion, Bias cutting, Bead Winding, Tyre Building& curing) has been found increasing. Particularly in curing section the types of defects found in tyres has been increased considerably. FMEA has been an effective tool in reducing the risk from the identified higher level to a lower level.

The reasons behind the occurrence of tyre scraps has been identified. The Percentage of Major accidents happen inside the Exports department is Less. Labours feel a considerable amount of safety inside the shop floor.
The Machines in the export department are found to be depriciated with reasonably high amount of wear & tear.
The Demand for Tyres in the Export department is increasing day by day. Construction of new Export department is under process.
The Labours are highly facilitated by providing with Quality foods at the Cheapest rate.
5.2 Conclusion: As TVS Sri Chakra is a intensive manufacturing unit, the possible occurrence of different type of wastes are found to be high. So it a need for every manufacturing organization to become lean thereby increasing its productivity and saving its valuable resources spent. As the Productivity is highly biased on Curing section in a tyre industry it is highly needed reduce the amount of scrap occur in the curing section. FMEA is one of the effective tools of lean to identify the scrap, spot the reasons, rate the value of severity & draw the action plan to reduce its occurrences. After Implementation of FMEA the Risk Priority number for each defects has been found to decrease reasonably to a degree of 25%. Hence froth Sri Chakra TVS has been found to become lean and work towards continuous improvement.
5.3 Suggestions: The Recommendations are as follows. The company should Focus on Total productive Maintenance to improve machine availability and to improve the life of machines. The company should rate the Safety hazards and create a safety check list. Shop Floor ambience should be altered in such a way that the workers are joyful and energetic. The company should install a ACOUSTIC insulation to absorb the noise produced in the plant and to keep the outside noise out. The R&D department should give effective suggestions to improve the machines life and overall productivity. Internal audit should be done on a regularly basis to spot and eliminate the defects.
All possible aspects of Lean should be implemented so as to improve efficiency and work towards zero defects.
Training on cleaning and maintaining of machine parts have to be carried out in order to ensure smooth production process and to increase the life of the machine.
Proper training on the modern aspects of production, techniques and its impact on productivity should be given to shop floor workers.
Suggestions Boxes should be provided at each department to collect the valid inputs on the employees.
BIBLIOGRAPHY: Books:
a. Yasuhiro Monden, ed. Toyota Production System, 3rd Edition, Inst of Industrial
Engineers, December 1 1998

b. K.Ashwathappa, ed. Operations & Production management, 8th Edition, Mumbai
Himalaya Publishing House, 2009

c. Andrew.P.Dillon, ed. The sayings of Shigeo Shingo Key Strategies for Plant
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d. Mike Rother, ed. vsm getting started set, 8th Edition , Lean Enterprise Institute, Inc ,
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d. www.lssacademy.com/2007/06/28/10-steps-to-creating-a-fmea/
e. www.systems2win.com/solutions/value_stream.htm

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Effectiveness of Lean Manufacturing at Sri Chakra TVS

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.2 Lean Goals & Strategy

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.3 Concepts to Achieve Lean

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.4 Benefits of Lean Manufacturing

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.5 Failure Mode & Effect Analysis

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.5.1 Basic Terms

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.5.2 Pre Work

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1.5.3 Sample Worksheet

High level sensor is

sensor is exposed at top and can be easily disconnected by user

Fill timeout based on time to fill to low level sense

Jane Doe 15-May-2012

disconnected customer floor

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

the problem before it reaches the end user or customer).

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

failures at a given operating time.

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

CHAPTER 2 REVIEW OF LITERATURE & RESEARCH DESIGN

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

2.2 Review Of Literature

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

1) Application of knowledge to a case

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

2.9 Chapter Scheme

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION:

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

CHAPTER 3 INDUSTRY PROFILE:

Effectiveness of Lean Manufacturing at Sri Chakra TVS

3.3 Role of Marketing

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Effectiveness of Lean Manufacturing at Sri Chakra TVS

Acharya Institute of Management & Sciences

Effectiveness of Lean Manufacturing at Sri Chakra TVS

3.8 Major Players and Market Shares